"Both parties believe the time is right to go our separate ways," chairman Dejphon Chansiri said.

"I maintain a huge amount of respect for Carlos as a coach and as a person and he will always be welcome at Hillsborough."

"Lots of managers will be very interested"

Former Sheffield Wednesday boss Brian Laws on BBC Radio Sheffield

I'm disappointed for Carlos, we all need to recognise what a great job he did. But we all know when we go in as managers, we have to get results.

The new manager will be backed,. They're not looking for someone to do something on a shoestring, they want someone to spend and spend wisely. The money spent under Carvalhal has probably not met the expectations, signings were not as good as they could have been.

Lots of managers will be very, very interested. Wednesday are an attractive football club. They have a chairman with money and support and that will attract all kind of managers. They must just make sure they pick right one. One to bring best of what he's got and what he can add to.

Analysis

BBC Radio Sheffield's Football Heaven presenter Rob Staton

At the end of Wednesday's latest defeat to Middlesbrough, some fans chanted for Carvalhal to go.

That felt like the tipping point. This was supposed to be the year Wednesday finally made it back to the Premier League, during their 150th anniversary celebrations. Instead, they're nearer the bottom three than the top six.

Carvalhal hasn't had it easy this season. Several key players have been missing through injury, including Fernando Forestieri and Tom Lees. Even so, fans were unhappy not just with results but with performances.

Too often Wednesday were slow to start games and they were on a seven game winless run.

Carvalhal was Dejphon Chansiri's first managerial appointment. It'll be interesting to see what his next move is.